(Big) Markets in Everything: Marijuana

by on December 19, 2006 at 7:05 am in Economics | Permalink

Marijuana is probably America’s biggest cash crop exceeding that of corn and soybeans.  And heh, no government subsidies you gotta like that!

John Henry December 19, 2006 at 8:11 am

No subsidy?

What do you call all the laws against marijuana?

If MJ were legal, its price would be similar to parsley or basil leaves.

John Henry

theCoach December 19, 2006 at 8:48 am

BDK,
I am not sure subsidy requires intention.

Half Sigma December 19, 2006 at 10:23 am

Without government laws making marijuana illegal, marijuana farming wouldn’t be very profitable at all, given that it’s a fungible good.

Marijuana farmers would then be on the verge of bankruptcy and begging for government handouts just like all the other farmers.

Joe Grossberg December 19, 2006 at 11:36 am

“Without government laws making marijuana illegal, marijuana farming wouldn’t be very profitable at all, given that it’s a fungible good.

Marijuana farmers would then be on the verge of bankruptcy and begging for government handouts just like all the other farmers.”

The farmers, sure. But the trade? No.

Look at the alcohol and tobacco businesses. Those companies are cash cows.

daksya December 19, 2006 at 2:09 pm

Ben M, contrary to generic drugs propaganda and myth, pot dealing is not dominated by very-steady-businessmen on the street corners. Kleiman’s model of “grudging toleration” presented in his book Against Excess and also in a Daedalus essay, is basically a rehash of the recommendations of the Nixon-appointed 1972 National Commission on Marihuana and Drug Abuse.

bbartlog December 19, 2006 at 3:59 pm

Marijuana wold surely also be branded. There’s a world of difference between the high-end marijuana grown in British Columbia or Humboldt County and ditchweed or even the average homegrown product.

scott December 19, 2006 at 7:35 pm

Just hold on long enough and marijuana will be legalized-remember how
years ago there was no gambling? Or going to the WalMart on Sundays?
Governments can’t resist forever new sources of revenue. It seems that the
scare tactics of the current administration are still up to par-comparing
marijuana to cocaine and heroin.

ghamal December 19, 2006 at 10:28 pm

Marijuana will not be legal any time soon. If it was legal the prison industrial complex would lose too much revenue.

aion kina March 20, 2009 at 1:48 am
Narconon October 23, 2010 at 12:40 pm

I actually read about that too. California is seriously thinking about legalizing marijuana and the financial reason behind it seems to be legit. Imagine a minimum of 6 billions/years coming only from marijuana growing business… That is an impressive number. Narconon

scott88 January 10, 2011 at 2:23 pm

I think whether it is legal or not it will remain the gateway drug. If it is legal more people will do it. If more people do it, more people will eventually require a residential drug rehab.

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